PSNY - Polestar looks to improve margin cash flow break-even by 2025 under new business plan

2023-11-08 16:11:21 ET

Swedish EV maker Polestar ( NASDAQ: PSNY ) Wednesday presented a business plan that targeted an accelerated margin improvement and a reduction of its total funding need to the point of cash flow break-even in 2025.

For the fiscal year 2025, Polestar said it is targeting a gross margin in the high teens with a total annual volume of about 155,000-165,000 cars.

Showing their continued commitment to Polestar, Volvo Cars, and Geely Holding have provided additional liquidity to the company, the company added.

Based on the liquidity support from Volvo and Geely, Polestar said that it expects it would require external funding of about $1.3 billion until achieving cash flow break-even, targeted in 2025.

Under an amendment to its existing shareholder term loan, Volvo Cars extended the maturity of its outstanding term loan by over three years to June 2027 and provided an aggregate of $200M in additional loan capacity with the same maturity date.

In addition, Geely Sweden Automotive Investment AB is making available a $250M term loan on substantially the same terms as Volvo Cars, including the maturity in June 2027.

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